Sunday, March 01, 2015

L.A. Times Juggled the Books and Fired Him, Auditor Says

By WILLIAM DOTINGA

LOS ANGELES (CN) - Los Angeles Times fired an auditor for blowing the whistle on a scheme to pad circulation numbers, the man and his company claim in court. The higher a newspaper's circulation, the more it can charge advertisers.

At some point, Daley says he became aware of "past fraudulent behavior at the Times, whereby the Times entered into agreements to 'buy its own newspapers' and count the purchases as part of its circulation," the complaint states.

"This fraud was designed to deceive the Times' advertisers and was very similar to a situation involving newspapers Newsday and Hoy, which led to federal arrests and convictions of Tribune employees. In fact, while the U.S. Attorney in New York was prosecuting employees of Tribune regarding Newsday and Hoy, the Times was engaging in essentially the same illegal activities in Los Angeles. As with the Newsday and Hoy case, the fraud perpetrated here was performed by high-level executives."

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The blog was started to talk about issues impacting the pressroom both positively and negatively. The views expressed here are not of the LA Times, but of each individual's opinion. The Pressmen's Club is composed of men and women who have printed the paper for twenty years or more. Semi-annual dinners are held in March and October. See Ed Padgett for more information.